The outlook for the 2021 worldwide toy business is promising. In the past year, the toy business has continued to thrive despite the COVID-19 pandemic. Many orders are coming from schools and homes for educational and entertainment toys for children and kidults.
Parents are buying more and more toys for counties still under lockdown to keep their children busy and happy. More, today’s toys are more advanced compared to the latter years. Thus, attracting more consumers who believe that toys aid in kids’ development.
However, despite the increased sales of toys over the years, the toy industry faces more opportunities and challenges in 2021.
Let us delve deeper into the toy industry’s challenges and opportunities in 2021.
1. COVID-19 Pandemic
After a year of struggling with COVID-19, the vaccine has been discovered, and thousands of people are getting vaccinated. The step is an excellent perspective measure for the toy business globally as it means offline stores will be open to the public. With the Easter holidays around the corner, toy sales are expected to rise with increased demand. Toy markets are targeting to distribute more toys to the most vulnerable in society at this time. If the pandemic ceases in 2021, we expect an increase in toy sales.
2. Absence of Trade Shows and Sales Cycles
January and February trade show has been canceled globally because of the ongoing pandemic. The cancellation has posed a challenge in the toy market sales. Trade shows like Buxton Toy Fair and Spielwarenmesse are essential in building and enhancing relations between sellers and buyers on a large scale.
The shows also give buyers a fun environment to view hundreds of different toys and compare their functionality and prices. Buyers also get educated on using some of the toys and why they should purchase them for their children.
Although technology offers the toys market a manageable online alternative, it cannot be compared to face to face interaction where buyers get to touch and feel the toys and interact with sellers directly.
Typically, buyers prefer to buy what they can see and touch as they feel more connected. Therefore, without the shows, there is an expected decrease or stagnation in toy sales.
3. Increase Online Retail Sales
Online business has recently grown over the COVID-19 pandemic period. It has had a significant impact on the toy as many retailers have shifted from physical to online business.
Amazon has been at the forefront of selling toys online and has recently recorded massive sales. Other online retailers have been struggling to compete for sales, which is a struggle for starters. Otherwise, online retailers who have been in the business for a long have managed to garner thousands of buyers in lockdown.
However, it is expected that when the world normalizes, Online acceleration will fade away once brick and mortar toy stores re-open again without restrictions. In the meantime, online retail wins in 2021 toy sales.
4. Kidults Hunger for Toys
There has been an increase in kidults cravings for toys. The teenager’s and adult’s demand for toys in 2021 have boosted sales by 30%. The two categories now have more time to play games in the comfort of their homes. They have spiked sales of building set kits and puzzles. What’s more, the group tends to purchase expensive toys, which is why there is an increase in average toy sales.
5. Expected Cinema re-opening
There is an expected re-opening of cinemas and the film industry, which means business for the toy market. Cinemas and toys are connected, and they have a significant impact on toy sales as a whole. According to a British Toy and Hobby Association research, toy sales have grown globally over the years, and the success broadly relies on depends on the film industry. When kids watch their favorite movies from cinemas, they tend to demand the latest film toys.
Over the years, the toy market has seen a massive increase in toy sales by an enormous percentage after the LEGO movie, Frozen, Jurassic World, and Minions. Kids demanded LEGO toys, Anna and Elsa dolls, dinosaurs, and minions.
The industry hopes that cinemas will have lots of movies in 2021 to spike movie character toys for kids, boosting sales for the toy market.